Right to put business banking under the microscope says FSB

COMMENTING on the Competition and Market Authority’s (CMA) decision to launch a market investigation of the small business banking sector, David Knowles Leak, FSB Thames Valley Regional Chairman said: “The CMA is right to put business banking under the microscope. As the CMA’s initial report showed, the market has a number of unwelcome features. It remains worryingly concentrated, with just four banks controlling 85 per cent of business current accounts, with low levels of switching between providers compounded by a lack of price transparency.

“There are a range of structural issues that have long been identified that potentially restrict competition and choice for small firms seeking much needed finance and other banking services. While we recognise there are some initiatives in place to address some of these issues, this is the opportunity to resolve any outstanding issues once and for all, and put in place the conditions for a thriving, dynamic banking sector fit for the 21st century.”

NB  The FSB is the UK’s leading business organisation with around 200,000 members. It exists to protect and promote the interests of the UK’s Real-Life Entrepreneurs who run their own business. More information is available at www.fsb.org.uk and follow on twitter @fsb_policy

Chair Thames Valley Federation of Small Business, David Knowles Leak